Four Tips to Hitting Your Perfect Price Point Part 4
Last But Not Least… Discounts
There are two keys when it comes to using discounts to win new clients. The first is introducing urgency, and the second is offering value.
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In creating urgency, you’re setting a due date and thereby nudging your potential client past the sense of this not being “the right time.” Suddenly there’s a very limited “right time” to get the services they were considering for a reduced price.
Price-wise, you have to go back to your overall strategy to decide if you’re going to offer a percentage discount, or a dollar discount. Percentages generally work better when dealing with lower dollar amounts – 50% is sexier than $50. But dollars are the better bet at higher prices, so you can show a big fat number behind that dollar sign.
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The key here is that the two – urgency and offered value – must be used together. If you offer a huge discount but have no explicit end date, then that sense of urgency is wiped out. Conversely, if you have a one-week sale but only slice off a tiny amount from your price, the sale becomes meaningless when it comes to value.
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Another way to discount is instead of purely slashing prices, you offer to knock off a percent from a certain service if your client brings in a new client. So you offer new Business A your “Advice For New Businesses” package… but you’ll give it to them for 10% less if they can get someone else to sign up with them (that second business also receiving 10% off).
So they call up Business B who agrees, and they come to you together for that deal where each gets 10% off. Your “Advice For New Businesses” package is a pretty standard bundle of services, and it costs you little to no time or money to tailor it to both A and B. So for the one-time loss of 20%, you now have two new clients who will grow with you, steered onward to additional services as time goes on.
BOSS remote bookkeeping staff have all worked reviewed by a senior reviewer before the work is returned to you
Like with the rest of our points, this is an experiment in getting to know your own business better – here you’re figuring out how to measure long-term gains (gained clients) versus short-term losses.
There is one great big caution sign here – charging too little too often will devalue the perception of your services. Don’t offer discounts for long periods of time or on a routine schedule. You want to keep your overall value up – offering a lot, for a little less, shouldn’t seem like something you have to do to stay in business. It’s generosity, not desperation.
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In summary, it all comes down to getting to know yourself and your clients – what you offer, and what they value most.